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LONDON, United Kingdom, Open banking company TrueLayer has secured $27 million in investment led by Italy’s CDP Venture Capital, strengthening its plans to expand account to account payments and develop its Pay by Bank technology. The funding comes as financial technology companies compete to make bank transfers a more accessible alternative to traditional card payments.
TrueLayer provides payment infrastructure that allows businesses to connect with customers’ bank accounts and initiate payments through supported banking systems. The company plans to use the new investment to develop its payment technology and support a hiring drive as it pursues further growth in European markets.
The investment also reflects continued interest in payment systems that reduce reliance on card networks and create more direct connections between consumers, merchants and financial institutions.
Why Pay by Bank Is Gaining Attention
Pay by Bank allows customers to authorize payments directly from their bank accounts, rather than entering card details or relying on a separate stored payment credential. Depending on the market and payment provider, the approach can support online purchases, account funding and other digital transactions.
For merchants, account to account payments may offer an alternative to conventional card processing. Their commercial appeal depends on factors such as transaction costs, authorization rates, settlement speed, customer familiarity and the ease of integrating the service into existing checkout systems.
For consumers, the experience must be simple and trustworthy. Customers need to understand which account they are authorizing, how much they are paying and what protections apply if something goes wrong.
These considerations mean adoption will depend on more than the availability of payment technology. Merchants must see a clear business case, while payment providers need to deliver reliable services across different banks and markets.
Investment Supports Product Development
TrueLayer intends to direct the new capital toward further development of its Pay by Bank offering and additional recruitment. Expanding the product could help the company serve more businesses and strengthen its position in Europe’s open banking ecosystem.
The opportunity is significant, but the competitive environment is demanding. Payment providers face established card networks, bank operated payment systems and other fintech companies developing account to account services.
Cross border expansion also introduces practical challenges, including differences in banking infrastructure, customer behaviour, local regulation and payment authorization processes. A service that performs well in one market may require adjustments before achieving similar adoption elsewhere.
What It Means for the Payments Industry
The investment highlights how funding is increasingly directed toward financial infrastructure rather than only consumer facing applications. Companies that connect banks, merchants and payment systems can play an important role in the movement of money across the digital economy.
For TrueLayer, the next test will be translating fresh capital into broader merchant adoption, reliable transaction performance and sustainable commercial growth. For the wider fintech sector, the development demonstrates that open banking’s long term value may depend on how effectively account data connections evolve into everyday financial services.
Pay by Bank is not guaranteed to replace card payments, but continued investment in the technology suggests that businesses are still looking for alternatives that can improve the economics and flexibility of digital transactions.
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